Posts tagged ‘loan terms’

Car Loan Terms to Know

Knowing loan terms is really a helpful solution when you go for a bad credit car loan or even if you have never had credit. It is important to really understand the contract you are going to be signing for your car purchase. You need to understand the terms as well as understand the numbers. One wants to be in the position to sign on the line knowing every detail.

Here is a sample of what some lenders will want from you:

A down payment will be asked for which is a one time expectation and is higher usually than the rest of the payments you will be making per month until your car is your own free and clear. They make it higher to see if you are a person who is serious about taking this loan and it is non-refundable.

They will want principle which means the amount of money you borrow leaving out the down-payment you have already paid.

And then they will want the interest payments which are added to the price of the car loan and you pay together each month. These rates of interest will vary. It will depend on which company you are using as well as your down-payment. The interest will usually range anywhere between 4% and 25%.

Other terms you need to know

There a few more terms to keep in mind such as collateral which are your assets you have promised to give the lender if you can`t pay your loan, and the repossession of your vehicle if you stop making your payments. The terms or the length of the loans and anything about a co-signer are important. And the document of ownership, and the title which proves that you own the car are crucial.

Once you familiarize yourself with all the terms, you will be all set to get that car you dreamed of!

Useful tips in selecting the best auto loan rates

Selecting the best auto loan rates allows you to save money from car buying. You can use these savings for other expenses such as for maintenance and repair of the vehicle in the future. In addition to this, getting the best rates from a loan helps you pay the remaining loan balance off and gain full ownership of the car. However, you need to take some useful tips in selecting the best loan rates. This includes the following:

Tip Number 1: Know the effects of your credit record with the loan rates that you can avail

Knowing the relationship of your credit report with the car loan rates helps you select the best loan rates suited for your current credit status. You can request a copy of your credit report from one of the credit reporting agencies. Take note of the entries incorporated on the report. This would help you determine your credit worthiness.

Always bear in mind that a positive credit record allows you to obtain the best loan rates offered by lenders as well as the number of loan deals suited for you. A negative credit record on the other hand reduces the number of loan offers applicable to your credit situation.

Tip Number 2: Take note of the available loan terms

Besides looking upon the available loan rates you should also check the terms of the loan offered. You might get lower monthly premiums but you would eventually be paying more than what is necessary. Select a shorter loan term as much as possible. Although it involves higher monthly payments compared to long term loans, a short term loan allows you to pay the loan off early and provides you savings from paying too much on the loan

Useful tips in checking the current car loan rates

Knowing the current car loan rates available in your present location is important. It allows you to have a clear idea on the amount that you would paying in case you obtain a loan to finance your new or used car purchase. This is also important since interest rates placed on loans vary from one place to another. Besides this, your credit score as well as the loan terms have greater effects on the amount
You pay each month.

Knowing the current loan rates for cars might be confusing and a bit hard if you have no idea where to look for it. However, this old problem is resolved by using the internet. This article provides you with specific sites where you could check the latest car loan rates and these are written below.


One of the most dependable sources of information about the current car loan rate is It has been providing the most accurate interest rate for car loans since 1994. The site also provides updated interest rate since it monitors the day to day activities that are happening on the car sales industry.

In addition to this, allows you to make a localized search of the rates in your exact area. All you need to do is provide your current state and city. However, to make your search more convenient, you can use the zip code in doing the localized search.


Another source of information when it comes to current car loan rates is This site first emerged as

How to make a comparison of different car loan rates

Making a comparison of different car loan rates allows you to find the best loan deal. Knowing whether a loan offer is affordable or not helps you save money.